'Honda has no plans to build a new factory in Indiana'

 

Posted March 6, 2025​

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In an update issued this morning titled "Tariff Announcement Response," Honda's Executive Vice President, General Manager, said the automaker's plans for its operations in Alliston "remain focused on protecting our manufacturing associates and our long-standing business operations across Canada."

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"We are taking a measured, thoughtful approach to understand and mitigate both short-term and long-term effects of the tariffs and are actively collaborating with multiple internal groups and external industry associations to address every angle," said Shuji Onizawa. "Regardless of the U.S. government announcement yesterday (March 5) providing tariff exemptions for all USMCA-compliant vehicles until April 2, there are still many unknowns and uncertainties. Therefore, we will continue with our approach to take no immediate actions related to either our manufacturing operations or future electrification plans in Canada."

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Onizawa said they will rely on Honda's flexible manufacturing which allows the company to adjust its model mix "to build more tariff-friendly models at HCM and limit the profit exposure of U.S. destined models."

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"We are evaluating our parts sourcing strategies to source from countries that do not have the same potential application of tariffs."

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Also addressed in the update to associates is a denial of published reports that Honda is moving Civic production from Mexico to Indiana. American President Donald Trump, in his address to the Congress Tuesday night, also mentioned the production shift because of the tariffs.

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"Honda has no plans to build a new factory in Indiana," said Onizawa. "We continunally study model mix strategies to appropriately adjust North American production to mitigate negative impacts of tariffs."​​​​​​​​​